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business vs environment
characteris of business environment
business vs environment
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The Effect of Business Environment on the Effectiveness and Functioning of an Organization
To best answer the question of how different business environments
affect the effectiveness of a business it is imperative that we first
define what the business environment is and what all its factors are.
The business environment perse' is: the environment in which a firm
exists, this setting is a dynamic unity of everything inside and
outside of the Company which adversely affects the activities of a
firm either directly or indirectly. The idea that; "a firm does not
exist in isolation and that it works within its overall environment";
just reinforces the importance of this environment to all business'
and the need to consider it. Seeing also as how the world is changing
with time and technological advancements, the business environments of
today are a constantly changing group of situations that a firm has to
deal with. By monitoring and adjusting to the changes in its
environment, a firm is best prepared to succeed. And it is only
through this preparation that a firm can survive. As a whole, the
"business environment" is the single most important factor a company
must study, monitor and adjust to, to be assured the success and
realizations of its goals.
The following table illustrates clearly the Business Environment:
Firm
Internal Environment
External Environment
The two divisions which compose the whole of the business environment;
though the effects of these 2 differ on the firm none is more
important than the other and both must be taken into consideration.
The first division of the environment is the "Internal environ...
... middle of paper ...
... and definitely not
making a profit.
All in all the business environment affects organizations adversely,
in my example although two extremes it is clear that the environment
can literally facilitate an organization's effectiveness or take it to
its failure. In view of this: it is important to note that a firm's
success relies heavily on the notion that it studies its business
environment in depth, and makes the necessary plans, changes and
adjustments needed for it to continue in its given situation. The
success or failure of an organization rests mainly on its ability to
adapt to its environment and make the best out of its situation. Firms
which fail to adapt to the changes brought about by the differences in
the business environments, will fail at achieving their goals and in
worst case scenarios go bankrupt.
A firm?s external environment is divided into three major areas : the general, industry and competitor environments. Below is an elaboration in further detail regarding the firm?s opportunities and threats in these three environments.
Environmental – External environmental factors are forces or trends that can affect a business whether it is an opportunity, threat, or constraint. They can be divided into three interrelated subcategories of remote, industry, and operating environments. The remote environment includes factors beyond a company’s operating situation such as the economic, social, political, technological, and ecological factors. The industry environment includes factors that have more of a direct influence on a company’s business such as entry barriers, competitor rivalry, the availability of substitutes, and the bargaining power of buyers and suppliers.
What major technology change has had the greatest impact on the quality of your life?
Organisational Structure, Culture, and Management Style of a Business C2 An Analysis of How the Organisational Structure, Culture And Management Style of the Business Affects its Performance and Operation and Help It to Meet Its Objectives The organisation structure of Wednesbury IKEA The organisation structure in the ‘Appendix section’ belongs to the Wednesbury branch of IKEA. Wednesbury IKEA is a large formal organisation and it is best suited to a hierarchical organisational structure. This is because; there are more employees as it goes downwards from each level.
Businesses play a significant role with the economies of all countries, whether developed or developing. It contributes to the welfare of the society through the satisfaction of needs, provides a source of livelihood to millions of people worldwide. Businesses do not operate in vacuums but operate within business environments. The events in the environment of a company have a direct effect on the success or failure of that company. According to Jain, Trehan and Trehan (2009), business environments can be categorized in two: (1) internal business environment; (2) external business environment. Institutions and organizations are usually in a position of controlling their internal business environment. By doing so, they gain the ability of affecting their institutional performance. On the contrary, it is difficult for a business to control the external environment; however, businesses can identify in advance the opportunities and threats presented by the external environment and take decisive actions to ensure its continued success (Jain, Trehan & Trehan, 2009; Goyal & Goyal, 2009).
Business culture is unique in many ways. The attitudes in which an individual can take on to increase productivity are based on several approaches. One of the many approaches to take when attempting to understand business is to acknowledge the roles associated with it. For example, in business, personal relationships can never be a consideration when making a business decision. This also goes hand in hand with the understanding that negative results from a business decision should never be regarded as a personal attack. Obviously, displaying any emotion when business is involved is a clear sign to a potential client that there is a lack of professionalism and maturity and this may reflect on not only the owner of the company, but the employees as well. In addition to having the capability of understanding that attitude is key to any successful business venture; it is also important to have statistics and figures to support the persuading of a potential client to invest in the product. Although many have researched the tactics necessary to follow in order to be successful in business, unfortunately, there is a lack of productivity in the business culture. However, there are some businesses (such as; Google, Apple and IBM) that have proven to be a success story that other organizations have attempted to mimic but with very little triumph. Trends and behaviors will show the effects of growth and whether productivity has been achieved in businesses today.
Environmental scanning "is the acquisition and use of information about events, trends, and relationships in an organization's external environment, the knowledge of which would assist management in planning the organization's future course of action." Choo (2001) As explained by Gazzale (2007) all businesses external environment are made up of three facets ": 1) the remote environment (macroeconomic factors including inflation, GDP, interest rates, etc.), 2) the industry environment (barriers to entry, the level of competition within the industry, etc.), and 3) the operating environment (the business's customers, suppliers, and workforce, etc.).
The contemporary business environment is dynamic, ever-changing and increasingly competitive. Their is potential for success, but even more for failure. Businesses are heavily influenced by the changing organisational environment and this intern creates much uncertainty for managers and organisations. With increasing uncertainty in the external environment, the more important it is that managers engage in continual planning. (Robbins 2012 p. 32) Businesses must be flexible and evolve in accordance with their external environment.
According to Jim Sirbasku the Organizational restructuring strategies help you get the most from people by developing a plan for corporate restructuring, layoffs and mergers. For organizations to develop, they often must experience significant changes in their overall strategies, practices and operational procedures. As companies evolve so must their employees to align with their organization.
The career I choose to pursue is the career of Business Administration. This career consists of running a small or big business and being able to run it and be capable of making small or very important decisions. A business runs and depends on the people and how people spend their money. If people spend their money responsibly and they know how to administrate their money and will make the economy to be stable and be good. As we all know, the economy has been really bad for the past year and it has made millions of people loose their homes and their jobs. The economy is a big factor in this career and it could be a huge problem that can be faced for a long period of time and more than once.
In the nutshell, changes in business environment are unforeseeable. It is common that sometimes company’s activity shall change to continues sustainable in the open market. Some company may threat of downsizing, bankruptcy or changing business model due to unfavorably change of business environment. Thus, it is important to manage change of business environment, which involved internal and external forces of change that contribute to incremental changes and transformation quantum changes in the organisation.
The world of business has undergone radical and dramatic changes in the last decade changes that present extraordinary challenges for the contemporary manager. A manager is an organizational member who is responsible for planning, organizing, leading, and controlling the activities of the organization so that the goals can be achieved. According to a widely referenced study by Henry Mintzberg, managers serve three primary roles: interpersonal, informational, and decision-making. Management is process of administrating and coordinating resources effectively and efficiently in an effort to achieve the goals of the organization.
Organisation is the most important element in management. Any organization is located and operated in the environment. Every action of all organizations is possible only if it allows its realization. The internal environment is the source of its vitality. It involves the capacity needed for the functioning of the organization, but at the same time can be a source of problems and even her death of the organisation. The external environment is the source that supply organization resources. The organization is in constant exchange with the external environment consequently it provides itself with survival. The main objective of this work is to consider elements of the internal and external environment of the organization which are in a constant
The environment contributes resources to the organisation only if the organisation returns desired goods and services to it.
Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements, which can affect the organization’s performance. The analysis entails assessing the level of threat or opportunity the factors might present. These evaluations are later translated into the decision-making process. The analysis helps align strategies with the firm’s environment. The importance of Environmental Analysis lies in its usefulness for evaluating the present strategy, setting strategic objectives and formulating strategies.